CoreWeave (CRWV) Nosedives 23.8% as Investors Turn Sour on $9-Billion Core Scientific Merger

CoreWeave, Inc. (NASDAQ:CRWV) is one of the stocks drowned heavily. Are you holding any?

CoreWeave saw its share prices fall by 23.8 percent week-on-week as investor sentiment was dampened by its $9-billion merger plan with Core Scientific, Inc. (NASDAQ:CORZ) and news that it was being investigated by a shareholder law firm over the deal.

Last week, the two companies announced the official signing of a definitive agreement, under which CoreWeave, Inc. (NASDAQ:CRWV) will acquire Core Scientific, Inc. (NASDAQ:CORZ) in an all-stock deal.

Under the terms, shareholders of Core Scientific, Inc. (NASDAQ:CORZ) will receive 0.1235 newly issued shares of CoreWeave, Inc.’s (NASDAQ:CRWV) Class A common stock based on a fixed exchange ratio.

“We will be well-positioned to accelerate the availability of world-class infrastructure for companies innovating with AI while delivering the greatest value for our shareholders, who will be able to participate in the tremendous upside potential of the combined company,” said Core Scientific, Inc. (NASDAQ:CORZ) President and CEO Adam Sullivan.

The proposed merger triggered a probe by former Louisiana attorney general Charles Foti, Jr. and law firm Kahn Swick & Foti, LLC.

“KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the company,” the law firm said.

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.